NCC fixes 5G reserved price at $197.4m, eyes December auction date
The Nigerian Communications Commission (NCC) has fixed the reserved price for auction of Fifth Generation (5G) at $197.4 million. The 5G network is to be deployed via the 3.5GHz spectrum.
According to the Draft Information Memorandum (IM) uploaded by the commission yesterday, the agency hinted that it might offer two lots of 100MHz each in the 3.5 GHz band ranging from 3500 to 3600 MHz and 3700 to 3800 MHz for auction prelude to the 5G network deployment in the country.
In the 80-page document, the commission informed that the “Generic Reserve Price (GR) is the minimum price at which a lot shall be sold, adding: “This is the Reserve Price for one lot of 100 MHz and has a value of $197,400,000.00 ($197.4 million) or its equivalent in naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.”
It stressed that each lot of 1×100 MHz represents an eligibility point. The IM defines the process for the licensing of spectrum in the 3.5 GHz band by the NCC.
The commission explained that the assignment would comprise a sale to be held in Abuja from December 13, 2021 as an Ascending Clock Auction with exit bids. Mock auction is billed for December 6.
According to the regulator, the spectrum lot, won by every bidder, would be assigned on a nationwide basis, consisting of the 36 states and the Federal Capital Territory (FCT).
However, the NCC said the IM “is for information purposes only.”
The organisation added: “It is not intended to form the sole basis of an investment decision and should not be considered as a recommendation by the commission to any stakeholder to participate in the auction.”